Materials Management Strategies

Question 1

Define Forecasting

Answer 1

The prediction of how many materials will be required by looking at past data from previous periods

Question 2

Define Materials Requirement Planning (MRP)

Answer 2

A computer based inventory system that itemises the materials needed to produce specific orders or forecasts

Question 3

Define Master Production Schedule (MPS)

Answer 3

A document that details what is to be produced, the quantities it will be produced in and when it will be produced

Question 4

Define Just In Time (JIT)

Answer 4

A strategy that relies on materials being delivered just as they are required in the production process